Buoyant demand for new property launches this year: Analysts

Buoyant demand for new property launches this year: Analysts

SINGAPORE: Demand for new private residential homes has improved in the first half of 2017 as compared to the same period last year, largely driven by the perception that the market is bottoming out, according to analysts.
The Urban Redevelopment Authority’s (URA) second quarter figures for the year showed the sale of new private residential units, excluding executive condominiums (ECs), rose by about 64 per cent in the first half of this year, as compared to the first half of 2016. The number of new units sold in the first half of 2017 was 6,039, as compared to 3,675 units in the first half of 2016.
New project launches and showroom flats this year have also attracted huge crowds and strong sales figures.
Most recently, the 450-unit [URL=" https://sg-property.sg/properties/martin-modern/"]luxury home project Martin Modern [/URL] sold more units than its initial target during the first launch. It had sold 89 units when it planned to launch “between 50-60 units”, the property’s developer GuocoLand said.
While not all new developments launched this year may have received similar demand, market observers say they have noticed a pick up in private home sales in all market segments - the Outside Central Region, Rest of Central Region, and Core Central Region – as compared to last year.
This is due to several reasons, with one being the belief that the “market is bottoming out soon”, said Mr Ong Teck Hui, the national director of research and consultancy at Jones Lang LaSalle.
Many buyers are drawn to the “fairly attractive prices” today, he said, because prices have fallen for the past 15 quarters and they “hope to take advantage before the market turns around”.
He said that the market could remain active in 2018, as demand has been pent up since 2013.
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